TotalEnergies, the French energy company, has recently revealed its ambitious plans to enhance shareholder distributions and expand oil-and-gas production. The company aims to return approximately 44% of cash flow from operations to shareholders this year while using $1.5 billion earned from divestment proceeds of Canadian assets to facilitate share buybacks, reaching a total value of $9 billion.
Furthermore, TotalEnergies has announced an increase in distribution guidance to over 40% of Cash Flow From Operations (CFFO) beyond 2023. This will be accompanied by net investments of $16 billion to $18 billion annually between 2024 and 2028.
In terms of production growth, the company intends to achieve a 2% to 3% annual increase in oil-and-gas production over the next five years, with a primary focus on liquefied natural gas. This sector is projected to generate more than $3 billion in additional underlying cash flow by 2028 compared to 2023 levels, assuming constant prices.
TotalEnergies also plans to bolster its low-carbon portfolio by investing $4 billion per year, aiming to surpass 100 terawatt-hours of power generation by 2030. Their objective is to increase cash flow to over $4 billion by 2028 from the current level of around $2 billion in 2023.
To achieve these goals, the company is strategically building a diverse portfolio consisting of renewables, combined-cycle power plants, and storage solutions. TotalEnergies expects to achieve a return on average capital employed of approximately 12%.
Overall, these strategic initiatives reflect TotalEnergies' commitment to growth and its determination to remain at the forefront of the energy industry.
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